Skip to main content
Normal View

Dáil Éireann debate -
Tuesday, 1 Jul 2003

Vol. 570 No. 2

Written Answers. - Company Closures.

Paul Kehoe

Question:

92 Mr. Kehoe asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress report on a company (details supplied) to date; the payments which have been made to employees and creditors to date; and if she will make a statement on the matter. [18544/03]

Eamon Gilmore

Question:

108 Mr. Gilmore asked the Tánaiste and Minister for Enterprise, Trade and Employment the progress to date in regard to the liquidation of a company (details supplied); if all obligations to the workforce have been satisfactorily discharged; the amount the State will receive as a 51% shareholder in this company; and if she will make a statement on the matter. [18454/03]

I propose to take Questions Nos. 92 and 108 together.

I understand that the liquidation is progressing in an orderly and efficient manner, though it is likely to take some time to complete the process. Unfortunately, efforts by the liquidator to sell all or part of the assets of the company on a going concern basis were unsuccessful and the liquidator is now proceeding with the realisation of the assets in a manner which seeks to maximise the cash available for creditors.

At this stage, I understand that partial payments have been made to the secured creditors. In addition, some preferential claims relating to holiday pay entitlements were paid recently while it is expected that some further payments in respect of preferential creditors, including minimum notice claims and unpaid pensions contributions, will be made in the near future. The liquidator hopes to be able to make an interim payment to the unsecured creditors within about 12 months. I do not expect that the State will receive any payment in respect of its shareholding in the company.

All applications received from employees for payments from the ex-gratia fund of €24.5 million, established by ICI and the State, have been processed. Payments from the fund were made by the trustee of the fund in accordance with the basis for distribution determined by him following consultations with employee representatives. This basis for distribution was endorsed by a ballot open to all employees.

In addition, all of the 405 eligible employees of the company concerned have been paid their statutory redundancy lump sum entitlements by my Department under the redundancy payments scheme from the social insurance fund, as the company is in liquidation. The application for statutory redundancy payments was treated as a matter of priority so as to ensure that most of the workers affected received their cheques before Christmas. Any remaining claims were processed as quickly as possible thereafter.
Payments in respect of a total of 452 claims under the insolvency payments scheme, covering a variety of such matters as wages, holiday pay, minimum notice entitlements and so on have been made, with applications from the liquidator in respect of any remaining insolvency entitlements being processed by my Department as quickly as possible. A further 287 minimum notice claims will be paid in the next few days while another 34 claims are currently being processed.
The liquidator has advised me that, based on legal advice received, he has admitted, as unsecured creditors in the liquidation, claims from the employees of the company to have entitlements to enhanced redundancy payments. It is expected that these additional claims will have the effect of reducing the prospective dividend to unsecured creditors generally. It must be emphasised, of course, that the amount to be paid in due course in respect of such claims is a matter solely for the liquidator and does not imply any commitment by the State to pay enhanced statutory payments.
Top
Share